Meta and BlackRock Announce $14 Billion Joint Venture for AI Data Center in Texas
On July 28, Meta (NASDAQ: META) and BlackRock (NYSE: BLK) announced a joint venture to develop a one-gigawatt data center campus in El Paso, Texas. The project is expected to cost $14 billion and will be co-owned by the two companies—BlackRock-managed funds holding 80% ownership while Meta retains 20%. BlackRock's investment includes both cash contributions of about $4.9 billion and debt financing for a total of $12.5 billion, with Meta contributing land and construction assets valued at approximately $2.3 billion. Meta will lease the facility under an initial four-year agreement that can be extended up to 20 years, allowing it access to computing capacity without directly funding or owning the entire campus. This partnership is intended to ease some of Meta's financial pressures as its capital expenditures for AI infrastructure continue to rise significantly—projected at $125 billion to $145 billion in 2026. The collaboration aims to combine BlackRock’s investment capabilities with Meta’s operational expertise, enabling faster construction and reducing the burden on Meta’s balance sheet. While it does not lower the cost of AI infrastructure per se, it makes Meta's spending more financially manageable by spreading upfront costs and risks.
Topics: AI infrastructure BlackRock (BLK) capital investment data centers Meta (META)